Convention between the Government of the Kingdom of Sweden and the Government of the Hungarian People’s Republic for the Avoidance of Double Taxation with Respect to Taxes on Income and on Capital

Avtal mellan Konungariket Sveriges regering och Folkrepubliken Ungerns regering för undvikande av dubbelbeskattning beträffande skatter på inkomst och förmögenhet

The Government of the Kingdom of Sweden and the Government of the Hungarian People’s Republic Mindful of the principles set forth in the Final Act of the Conference on Security and Cooperation in Europe and desiring to avoid double taxation with respect to taxes on income and on capital; Have concluded the following Convention:

Konungariket Sveriges regering och Folkrepubliken Ungerns regering har, med beaktande av de principer som framlagts i den europeiska säkerhets- och samarbetskonferensens slutdokument och föranledda av önskan att undvika dubbelbeskattning beträffande skatter på inkomst och förmögenhet, ingått följande avtal:

Article 1

Artikel 1

Personal scope

Personer på vilka avtalet tillämpas

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Detta avtal tillämpas på personer som har hemvist i en avtalsslutande stat eller i båda staterna.

Article 2

Artikel 2

Taxes covered

Skatter som omfattas av avtalet

(1) This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its local authorities, irrespective of the manner in which they are levied.

(2) There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.

(3) The existing taxes to which the Convention shall apply are:

a) In the Hungarian People’s Republic:

a) i Folkrepubliken Ungern:

(i) the income taxes (a jövedelemadók);

1) inkomstskatterna (a jövedelemadók);

(ii) the profit taxes (a nyereségadók);

2) vinstskatterna (a nyereségadók);

(iii) the special corporation tax (a társasági különadó);

3) den särskilda bolagsskatten (a társasági különadó);

(iv) the house tax (a házadó);

4) byggnadsskatten (a házadó);

(v) the tax on house values (a házérték adó);

5) byggnadsvärdeskatten (a házérték adó);

(vi) the ground tax (a telekadó);

6) markskatten (a telekadó);

(vii) the contribution to communal development (a községfejlesztési hozzájárulás);

7) bidraget till kommunal utveckling (a községfejlesztési hozzájárulás);

(viii) the levy on dividends and profit distributions of commercial companies (a kereskedelmi társaságok osztalék és nyereség kifizetései utáni illeték)

8) skatten på utdelning och vinstdistribution från rörelsedrivande bolag (a kereskedelmi társaságok osztalék és nyereség kifizetései utáni illeték)

(hereinafter referred to as ”Hungarian tax”).

(i det följande benämnda ”ungersk skatt”).

b) In Sweden:

b) i Sverige

(i) the State income tax (den statliga inkomstskatten), including sailors’ tax (sjömansskatten) and coupon tax (kupongskatten);

1) den statliga inkomstskatten, sjömansskatten och kupongskatten däri inbegripna;

(ii) the tax on the undistributed profits of companies (ersättningsskatten) and the tax on distribution in connection with reduction of share capital or the winding-up of a company (utskiftningsskatten);

2) ersättningsskatten och utskiftningsskatten;

(iii) the tax on public entertainers (bevillningsavgiften för vissa offentliga föreställningar);

3) bevillningsavgiften för vissa offentliga föreställningar;

(iv) the communal income tax (den kommunala inkomstskatten); and

4) den kommunala inkomstskatten; samt

(v) the State capital tax (den statliga förmögenhetsskatten)

5) den statliga förmögenhetsskatten

(hereinafter referred to as ”Swedish tax”).

(i det följande benämnda ”svensk skatt”).

(4) The Convention shall also apply to any identical or substantially similar taxes which are imposed in either Contracting State after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall each year notify each other of any significant changes which have been made in their respective taxation laws.

Article 3

Artikel 3

General definitions

Allmänna definitioner

(1) For the purposes of this Convention, unless the context otherwise requires:

a) The term ”the Hungarian People’s Republic”, when used in a geographical sense, means the territory of the Hungarian People’s Republic;

a) ”Folkrepubliken Ungern” åsyftar, när det används i geografisk mening, Folkrepubliken Ungerns territorium;

b) the term ”Sweden” means the Kingdom of Sweden and includes any area outside the territorial sea of Sweden within which under the laws of Sweden and in accordance with international law the rights of Sweden with respect to the exploration and exploitation of the natural resources on the sea bed or in its subsoil may be exercised;

b) ”Sverige” åsyftar Konungariket Sverige och inbegriper varje utanför Sveriges territorialvatten beläget område, inom vilket Sverige enligt svensk lag och i överensstämmelse med folkrättens allmänna regler äger utöva sina rättigheter med avseende på utforskandet och utnyttjandet av naturtillgångarna på havsbottnen eller i dennas underlag;

c) the term ”person” includes an individual, a company and any other body of persons;

c)”person” inbegriper fysisk person, bolag och annan sammanslutning;

d) the term ”company” means any body corporate or any entity which is treated as a body corporate for tax purposes;

d) ”bolag” åsyftar juridisk person eller annan som i beskattningshänseende behandlas såsom juridisk person;

e) the term ”enterprise of a Contracting State” and ”enterprise of the other Contracting State”, mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

e) ”företag i en avtalsslutande stat” och ”företag i den andra avtalsslutande staten” åsyftar företag som bedrivs av person med hemvist i en avtalsslutande stat, respektive företag som bedrivs av person med hemvist i den andra avtalsslutande staten;

f) the term ”international traffic” means any transport by a ship, aircraft or road transport vehicle operated by an enterprise which has its place of effective management in a Contracting State, except when the ship, aircraft or vehicle is operated solely between places in the other Contracting State;

f) ”internationell trafik” åsyftar transport med fartyg, luftfartyg eller landsvägsfordon som används av företag som har sin verkliga ledning i en avtalsslutande stat utom då fartyget, luftfartyget eller fordonet används uteslutande mellan platser i den andra avtalsslutande staten;

g) the term ”national” means:

g) ”medborgare” åsyftar:

(i) any individual possessing the nationality of a Contracting State;

1) fysiska personer som är medborgare i en avtalsslutande stat;

(ii) any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State;

2) juridiska personer och andra sammanslutningar som bildats enligt den lagstiftning som gäller i en avtalsslutande stat;

h) the term ”competent authority” means:

h) ”behörig myndighet” åsyftar:

(i) in the Hungarian People’s Republic, the Minister of Finance or his authorized representative;

1) i Folkrepubliken Ungern, finansministern eller dennes befullmäktigade ombud;

(ii) in Sweden, the Minister of the Budget or his authorized representative.

2) i Sverige, budgetministern eller dennes befullmäktigade ombud.

(2) As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies.

Article 4

Artikel 4

Fiscal domicile

Skatterättsligt hemvist

(1) For the purposes of this Convention, the term ”resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein.

(2) Where by reason of the provisions of paragraph (1) an individual is a resident of both Contracting States, then his status shall be determined as follows:

a) He shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State in which he has his centre of vital interests;

a) Han anses ha hemvist i den stat där han har ett hem som stadigvarande står till hans förfogande. Om han har ett sådant hem i båda staterna, anses han ha hemvist i den stat i vilken han har centrum för sina levnadsintressen.

b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode;

b) Om det inte kan avgöras i vilken stat han har centrum för sina levnadsintressen eller om han inte i någondera staten har ett hem som stadigvarande står till hans förfogande, anses han ha hemvist i den stat där han stadigvarande vistas.

c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;

c) Om han stadigvarande vistas i båda staterna eller om han inte vistas stadigvarande i någon av dem, anses han ha hemvist i den stat där han är medborgare.

d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

d) Om han är medborgare i båda staterna eller om han inte är medborgare i någon av dem, avgör de behöriga myndigheterna i de avtalsslutande staterna frågan genom ömsesidig överenskommelse.

(3) Where by reason of the provisions of paragraph (1) a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

Article 5

Artikel 5

Permanent establishment

Fast driftställe

(1) For the purposes of this Convention the term ”permanent establishment” means a fixed place of business through which the business of the enterprise is wholly or partly carried on.

(2) The term ”permanent establishment” includes especially:

a) a place of management;

a) plats för företagsledning;

b) a branch;

b) filial;

c) an office;

c) kontor;

d) a factory;

d) fabrik;

e) a workshop; and

e) verkstad; och

f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

f) gruva, olje- eller gaskälla, stenbrott eller annan plats för utvinning av naturtillgångar.

(3) A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months.

(4) Notwithstanding the preceding provisions of this Article, the term ”permanent establishment” shall be deemed not to include:

a) The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

a) användningen av anordningar uteslutande för lagring, utställning eller utlämnande av företaget tillhöriga varor;

b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

b) innehavet av ett företaget tillhörigt varulager uteslutande för lagring, utställning eller utlämnande;

c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

c) innehavet av ett företaget tillhörigt varulager uteslutande för bearbetning eller förädling genom annat företags försorg;

d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

d) innehavet av stadigvarande plats för affärsverksamhet uteslutande för inköp av varor eller införskaffande av upplysningar för företaget;

e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;

e) innehavet av stadigvarande plats för affärsverksamhet uteslutande för att för företaget bedriva annan verksamhet av förberedande eller biträdande art;

f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

f) innehavet av stadigvarande plats för affärsverksamhet uteslutande för att kombinera verksamheter som anges i punkterna a) e), under förutsättning att hela den verksamhet som bedrivs från den stadigvarande platsen för affärsverksamhet på grund av denna kombination är av förberedande eller biträdande art.

(5) Notwithstanding the provisions of paragraphs (1) and (2), where a person other than an agent of an independent status to whom paragraph (6) applies is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph (4) which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

(6) An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

(7) The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6

Artikel 6

Income from immovable property

Inkomst av fast egendom

(1) Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

(2) The term ”immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

(3) The provisions of paragraph (1) shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

(4) The provisions of paragraphs (1) and (3) shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

Article 7

Artikel 7

Business profits

Inkomst av rörelse

(1) The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

(2) Subject to the provisions of paragraph (3), where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activites under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

(3) In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

(4) No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise or of the mere delivery to that permanent establishment of goods or merchandise for its use.

(5) For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

(6) Where profits include items of income which are dealt whith separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8

Artikel 8

International transport

Internationella transporter

(1) Profits from the operation of ships, aircraft or road transport vehicles in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(2) If the place of effective management of an enterprise carrying on shipping in international traffic is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

(3) With respect to profits derived by the air transport consortium Scandinavian Airlines System (SAS) the provisions of paragraph (1) shall apply, but only to such part of the profits as corresponds to the participation held in that consortium by AB Aerotransport (ABA), the Swedish partner of Scandinavian Airlines System (SAS).

(4) The provisions of paragraph (1) shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

(5) The provisions of paragraphs (1), (3) and (4) shall also apply where the enterprise has an agency in the other State for the tansportation of goods or persons. However, this shall only apply to activities directly connected with the business of shipping, aircraft and road transportation including auxiliary activities connected therewith.

Article 9

Artikel 9

Associated enterprises

Företag med intressegemenskap

(1) Where

a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

a) ett företag i en avtalsslutande stat direkt eller indirekt deltager i ledningen eller övervakningen av ett företag i den andra avtalsslutande staten eller äger del i detta företags kapital, eller

b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

b) samma personer direkt eller indirekt deltager i ledningen eller övervakningen av såväl ett företag i en avtalsslutande stat som ett företag i den andra avtalsslutande staten eller äger del i båda dessa företags kapital, iakttages följande.

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

Om mellan företagen i fråga om handelsförbindelser eller finansiella förbindelser avtalas eller föreskrivs villkor, som avviker från dem som skulle ha avtalats mellan av varandra oberoende företag, får all inkomst, som utan sådana villkor skulle ha tillkommit det ena företaget men som på grund av villkoren i fråga inte tillkommit detta företag, inräknas i detta företags inkomst och beskattas i överensstämmelse därmed.

(2) Where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.

Article 10

Artikel 10

Dividends

Utdelning

(1) Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

(2) However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed:

a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends;

a) 5 procent av utdelningens bruttobelopp, om den som har rätt till utdelningen är ett bolag (med undantag för handelsbolag) som direkt behärskar minst 25 procent av det utbetalande bolagets kapital;

b) 15 per cent of the gross amount of the dividends in all other cases.

b) 15 procent av utdelningens bruttobelopp i övriga fall.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

Denna punkt berör inte bolagets beskattning för vinst av vilken utdelningen betalas.

(3) The term ”dividends” as used in this Article means income from shares, mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.

(4) Notwithstanding the provisions of paragraph (1), dividends paid by a company being a resident of the Hungarian People’s Republic to a company which is a resident of Sweden shall be exempt from Swedish tax to the extent that the dividends would have been exempt under Swedish law if both companies had been Swedish companies.

(5) The provisions of paragraphs (1) and (2) shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

(6) Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

Article 11

Artikel 11

Interest

Ränta

(1) Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner of the interest.

(2) The term ”interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures.

(3) The provisions of paragraph (1) shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

(4) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 12

Artikel 12

Royalties

Royalty

(1) Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner of the royalties.

(2) The term ”royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films, and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience.

(3) The provisions of paragraph (1) shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

(4) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 13

Artikel 13

Capital gains

Realisationsvinst

(1) Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State, or from the alienation of shares or similar rights in a company the assets of which consist mainly of such immovable property, may be taxed in that other State.

(2) Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

(3) Gains from the alienation of ships, aircraft or road transport vehicles operated in international traffic or movable property pertaining to the operation of such ships, aircraft or vehicles shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(4) Gains from the alienation of any property other than that referred to in paragraphs (1), (2) and (3), shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14

Artikel 14

Independent personal services

Självständig yrkesutövning

(1) Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State, but only so much of it as is attributable to that fixed base.

(2) The term ”professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

Article 15

Artikel 15

Dependent personal services

Enskild tjänst

(1) Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the ohter Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

(2) Notwithstanding the provisions of paragraph (1), remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

a) The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned, and

a) mottagaren vistas i denna andra stat under tidrymd eller tidrymder som sammanlagt inte överstiger 183 dagar under kalenderåret i fråga, och

b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and

b) ersättningen betalas av eller på uppdrag av arbetsgivare som inte har hemvist i denna andra stat, samt

c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

c) ersättningen inte belastar fast driftställe eller stadigvarande anordning som arbetsgivaren har i denna andra stat.

(3) Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road transport vehicle operated in international traffic, may be taxed in the Contracting State in which the place of effective management of the enterprise is situated. Where a resident of Sweden derives remuneration in respect of an employment exercised aboard an aircraft operated in international traffic by the air transport consortium Scandinavian Airlines System (SAS), such remuneration shall be taxable only in Sweden.

Article 16

Artikel 16

Directors’ fees

Styrelsearvoden

Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or any other similar board of a company which is a resident of the other Contracting State may be taxed in that other State.

Styrelsearvoden och andra liknande ersättningar, som person med hemvist i en avtalsslutande stat uppbär i egenskap av medlem i styrelse eller annat liknande organ i bolag med hemvist i den andra avtalsslutande staten, får beskattas i denna andra stat.

Article 17

Artikel 17

Artistes and athletes

Artister och idrottsmän

(1) Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

(2) Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised, if that person is directly or indirectly controlled by the entertainer or athlete.

(3) Notwithstanding the provisions of paragraph (1) of this Article, income derived from such activities as defined in paragraph (1) performed in a Contracting State shall be exempt from tax in that State if the activities are carried on under a cultural agreement between the Contracting States, or are substantially supported by public funds of the other Contracting State.

Article 18

Artikel 18

Pensions

Pensioner

Subject to the provisions of paragraph (2) of Article 19, pensions and other similar remuneration in consideration of past employment, annuities or disbursements under the Social Security legislation paid to a resident of a Contracting State may be taxed in the Contracting State where they arise.

Om inte bestämmelserna i artikel 19 punkt 2 föranleder annat, får pensioner och andra liknande ersättningar på grund av tidigare anställning, livräntor eller utbetalningar enligt socialförsäkringslagstiftningen som betalas till person med hemvist i en avtalsslutande stat beskattas i den avtalsslutande stat varifrån ersättningen härrör.

Article 19

Artikel 19

Government service

Offentlig tjänst

(1) a) Remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in that State.

b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:

b) Sådan ersättning beskattas emellertid endast i den andra avtalsslutande staten, om arbetet utförs i denna stat och personen i fråga har hemvist i denna stat och:

(i) is a national of that State; or

1) är medborgare i denna stat; eller

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2) inte fick hemvist i denna stat uteslutande för att utföra arbetet.

(2) a) Any pension paid by, or out of funds created by, a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in that State.

b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

b) Sådan pension beskattas emellertid endast i den andra avtalsslutande staten, om personen i fråga har hemvist och är medborgare i denna stat.

(3) The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with business or production activities carried on by a Contracting State or a local authority thereof.

Article 20

Artikel 20

Students

Studerande

(1) Payments which a student or business, technical, agricultural or forestry apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments are made to him from sources outside that State. Income derived by such a student from a scholarship held by him for the purpose of his full time education at a university or other institution for higher education, or by such an apprentice for his training shall be exempt from tax on that income in the Contracting State which he is visiting.

(2) A student at a university or other educational institution in a Contracting State, who during a temporary stay in the other Contracting State holds an employment in that other State for a period not exceeding 100 days in a calendar year for the purpose of obtaining practical experience in connection with his studies, shall be taxable in that other State only for such part of the income from the employment as exceeds 1 500 Swedish kronor a calendar month or the equivalent in Hungarian currency. The exemption granted under this paragraph shall not, however, exceed an aggregate amount of 4 500 Swedish kronor in a calendar year or the equivalent in Hungarian currency. Any amount exempted from tax under this paragraph shall include personal allowances for the calendar year in question.

(3) The competent authorities of the Contracting States may agree on such changes of the amounts mentioned in paragraph (2) of this Article as may be reasonable with regard to changes in the value of money, amended legislation in a Contracting State or other similar circumstances.

Article 21

Artikel 21

Other income

Annan inkomst

(1) Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

(2) The provisions of paragraph (1) shall not apply to income, other than income from immovable property as defined in paragraph (2) of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 22

Artikel 22

Capital

Förmögenhet

(1) Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.

(2) Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.

(3) Capital represented by ships, aircraft and road transport vehicles operated in international traffic and by movable property pertaining to the operation of such ships, aircraft and vehicles shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

(4) All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

Article 23

Artikel 23

Elimination of double taxation

Undanröjande av dubbelbeskattning

(1) In the case of the Hungarian People’s Republic double taxation shall be avoided as follows:

a) Where a resident of the Hungarian People’s Republic derives income or owns capital which, in accordance with the provisions of this Convention may be taxed in Sweden, the Hungarian People’s Republic shall, subject to the provisions of sub-paragraphs b) and c), exempt such income or capital from tax.

a) Om person med hemvist i Folkrepubliken Ungern förvärvar inkomst eller innehar förmögenhet, som enligt bestämmelserna i detta avtal får beskattas i Sverige, skall Folkrepubliken Ungern, såvida inte bestämmelserna i punkterna b) och c) föranleder annat, undantaga sådan inkomst eller förmögenhet från skatt.

b) Where a resident of the Hungarian People’s Republic derives items of income which, in accordance with the provisions of Article 10, may be taxed in Sweden, the Hungarian People’s Republic shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Sweden. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Sweden.

b) Om person med hemvist i Folkrepubliken Ungern förvärvar inkomst som enligt bestämmelserna i artikel 10 får beskattas i Sverige, skall Folkrepubliken Ungern från skatten på denna persons inkomst avräkna ett belopp motsvarande den skatt som betalats i Sverige. Avräkningsbeloppet skall emellertid inte överstiga den del av skatten, beräknad utan sådan avräkning, som belöper på den från Sverige uppburna inkomsten.

c) Where in accordance with any provisions of the Convention income derived or capital owned by a resident of the Hungarian People’s Republic is exempt from tax in the Hungarian People’s Republic, the Hungarian People’s Republic may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

c) Om inkomst som förvärvas eller förmögenhet som innehas av person med hemvist i Folkrepubliken Ungern enligt bestämmelser i avtalet är undantagen från skatt i Folkrepubliken Ungern, får Folkrepubliken Ungern likväl vid bestämmandet av skatten på denna persons återstående inkomst eller förmögenhet beakta den inkomst eller förmögenhet som undantagits från skatt.

(2) In the case of Sweden, double taxation shall be avoided as follows:

a) Subject to the provisions of sub-paragraph b) of this paragraph and of paragraph (4) of Article 10, where a resident of Sweden derives income or owns capital which, in accordance with the provisions of this Convention may be taxed in the Hungarian People’s Republic, Sweden shall allow:

a) Om person med hemvist i Sverige förvärvar inkomst eller innehar förmögenhet som enligt bestämmelserna i detta avtal får beskattas i Folkrepubliken Ungern, skall Sverige, såvida inte bestämmelserna i punkt b) nedan eller i artikel 10 punkt 4 föranleder annat,

(i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the Hungarian People’s Republic,

1) från skatten på denna persons inkomst avräkna ett belopp motsvarande den inkomstskatt som betalats i Folkrepubliken Ungern;

(ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in the Hungarian People’s Republic.

2) från skatten på denna persons förmögenhet avräkna ett belopp motsvarande den förmögenhetsskatt som betalats i Folkrepubliken Ungern.

Such deduction in either case shall not, however, exceed that part of the income tax or capital tax, respectively, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in the Hungarian People’s Republic.

Avräkningsbeloppet skall emellertid inte i någotdera fallet överstiga den del av inkomstskatten respektive förmögenhetsskatten, beräknad utan sådan avräkning, som belöper på den inkomst eller den förmögenhet som får beskattas i Folkrepubliken Ungern.

b) Where a resident of Sweden derives income or owns capital which, in accordance with the provisions of this Convention, shall be taxable only in the Hungarian People’s Republic, Sweden may include this income or capital in the tax base but shall allow as a deduction from the income tax or capital tax that part of the income tax or capital tax, respectively, which is attributable, as the case may be, to the income derived from or the capital owned in the Hungarian People’s Republic.

b) Om person med hemvist i Sverige förvärvar inkomst eller innehar förmögenhet, som enligt bestämmelserna i avtalet beskattas endast i Folkrepubliken Ungern, får Sverige inräkna inkomsten eller förmögenheten i beskattningsunderlaget men skall från skatten på inkomsten eller förmögenheten avdraga den del av inkomstskatten respektive förmögenhetsskatten som belöper på den inkomst som uppburits från Folkrepubliken Ungern eller den förmögenhet som innehas där.

Article 24

Artikel 24

Non-discrimination

Förbud mot diskriminering

(1) Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.

(2) The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

(3) Except where the provisions of paragraph (1) of Article 9, paragraph (4) of Article 11, or paragraph (4) of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.

(4) Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

(5) The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

Article 25

Artikel 25

Mutual agreement procedure

Förfarandet vid ömsesidig överenskommelse

(1) Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph (1) of Article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

(2) The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

(3) The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

(4) The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.

Article 26

Artikel 26

Exchange of information

Utbyte av upplysningar

(1) The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

(2) In no case shall the provisions of paragraph (1) be construed so as to impose on a Contracting State the obligation:

a) To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

a) vidtaga förvaltningsåtgärder som avviker från lagstiftning och administrativ praxis i denna stat eller i den andra avtalsslutande staten;

b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;

b) lämna upplysningar som inte är tillgängliga enligt lagstiftningen eller sedvanlig administrativ praxis i denna stat eller i den andra avtalsslutande staten;

c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).

c) lämna upplysningar som skulle röja affärshemlighet, industri-, handels- eller yrkeshemlighet eller i näringsverksamhet nyttjat förfaringssätt eller upplysningar, vilkas överlämnande skulle strida mot allmänna hänsyn (ordre public).

Article 27

Artikel 27

Members of diplomatic or consular missions

Personer som tillhör beskickningar eller konsulat

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic or consular missions under the general rules of international law or under the provisions of special agreements.

Bestämmelserna i detta avtal påverkar inte de privilegier i beskattningshänseende, som enligt folkrättens allmänna regler eller bestämmelser i särskilda överenskommelser tillkommer personer som tillhör beskickningar eller konsulat.

Article 28

Artikel 28

Entry into force

Ikraftträdande

(1) The Governments of the Contracting States shall notify each other when the constitutional requirements for the entry into force of this Convention have been complied with.

(2) The Convention shall enter into force sixty days after the date of the latter of the notifications referred to in paragraph (1) and its provisions shall have effect:

a) In respect of income derived on or after 1st January next following the year in which the Convention enters into force;

a) beträffande inkomst som förvärvas den 1 januari närmast efter det år då avtalet träder i kraft eller senare;

b) in respect of capital which is assessed in or after the second calendar year next following that in which the Convention enters into force.

b) beträffande förmögenhet som taxeras andra kalenderåret närmast efter det då avtalet träder i kraft eller senare.

(3) The Convention between the Kingdom of Sweden and the Kingdom of Hungary for the avoidance of double taxation with respect to direct taxes signed at Budapest on 17 June 1936, shall terminate upon the entry into force of this Convention and thereupon cease to have effect in respect of income and capital to which this Convention applies in accordance with the provisions of paragraph (2) of this Article.

Article 29

Artikel 29

Termination

Upphörande

This Convention shall remain in force indefinitely, but the Government of either Contracting State may, on or before 30th June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the Government of the other Contracting State, through diplomatic channels, written notice of termination.

Detta avtal förblir i kraft utan tidsbegränsning men envar av de avtalsslutande staternas regeringar äger att   senast den 30 juni under ett kalenderår, som börjar efter utgången av en tidrymd av fem år räknat från dagen för avtalets ikraftträdande   på diplomatisk väg skriftligen uppsäga avtalet hos den andra avtalsslutande statens regering.

In such event the Convention shall cease to have effect in respect of income derived on or after 1st January next following the year in which such notice is given and in respect of capital which is assessed in or after the second calendar year next following that in which such notice is given.

I händelse av sådan uppsägning upphör avtalet att gälla beträffande inkomst som förvärvas den 1 januari närmast efter det år då sådan uppsägning sker eller senare samt beträffande förmögenhet som taxeras andra kalenderåret närmast efter det då uppsägning sker eller senare.

In witness whereof the undersigned, being duly authorized thereto, have signed the present Convention and have affixed thereto their seals.

Till bekräftelse härav har undertecknade, därtill vederbörligen bemyndigade, undertecknat detta avtal och försett detsamma med sina sigill.

Done at Stockholm, this 12th day of October, 1981, in duplicate in the English language.

Som skedde i Stockholm den 12 oktober 1981 i två exemplar på engelska språket.

Som skedde i Stockholm den 12 oktober 1981 i två exemplar på engelska språket.